CryptoStar Corp. Announces Second Quarter 2019 Financial Results

TORONTO, July 29, 2019 /CNW/ - CryptoStar Corp. (TSXV: CSTR) ("CryptoStar" or the "Company"), a cryptocurrency mining and data centre operator, is pleased to announce its financial results for the second quarter ended June 30, 2019. For the full condensed consolidated interim financial statements and management discussion and analysis for the second quarter ended June 30, 2019, please visit SEDAR at www.sedar.com. All values in this news release are in United States Dollars unless otherwise specified.

• Revenue of $3.4 million for Q2.
• Adjusted EBITDA of $489,058 for Q2.
• 474 Bitcoin mined in Q2.
• Cryptostar Corp.'s COO - Corey Dozhier was selected for and awarded the Top 50 Tech Visionaries award conferred at InterCon on 18th - 20th June, 2019 at Caesars Palace, Las Vegas.

	For the Three Months Ended June 30, 2019	For the Three Months Ended June 30, 2018
INCOME FROM MINING OF DIGITAL CURRENCY
Income from mining of digital currency	3,376,458	3,701,222
Impairment or realized gain (loss) of digital currency	(142,757)	89,791
Direct operating and maintenance costs	(2,131,380)	(1,575,026)
Mining profit/loss	1,102,321	2,215,987
Mining profit margin	33%	60%
Other Operating Expenses	(613,263)	(476,795)
Gross profit/loss	489,058	1,739,192
Depreciation	(1,242,448)	(1,835,190)
Foreign exchange (gain)	(10,810)	(681)
Recognition and change in fair value of warrant	—	656,798
Impairment on mining equipment	3,329,519	—
Net income (loss) before income taxes	2,565,319	560,119
Income taxes	—	8,226
Net income (loss) and comprehensive income (loss)	2,565,319	551,893
Adjusted EBITDA	489,058	1,739,192
Adjusted EBITDA margin	14%	47%
(Loss) earnings per share, basic and diluted	0.012	0.003
Weighted average shares, basic and diluted	208,752,800	205,500,000
Bitcoin mined	474	481
Average price at which Bitcoin was exchanged (sold) for the period	7,123	7,695

About CryptoStar Corp.:

CryptoStar has one of the world's largest cryptocurrency mining operations with data centres located in the U.S.A., Canada and Iceland. CryptoStar is currently dedicated to further expansion into low cost energy regions in North America and around the globe.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press release.

Non-GAAP Measures

This press release presents certain non-GAAP ("GAAP" refers to Generally Accepted Accounting Principles) financial measures to assist readers in understanding the Company's performance. These non-GAAP measures do not have any standardized meaning and therefore are unlikely to be comparable to similar measures presented by other issuers and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.

Management uses these non-GAAP measures to supplement the analysis and evaluation of operating performance.

The following terms are used, which are not found in the Chartered Professional Accountants of Canada Handbook and do not have a standardized meaning under GAAP.

• "EBITDA" (Earnings before Interest, Taxes, Depreciation, and Amortization) represents net income or loss excluding net finance income or expense, income tax or recovery, depreciation, and amortization.
• "Adjusted EBITDA" represents EBITDA adjusted to exclude share-based compensation, fair value loss or gain on remeasurement of digital assets, and costs associated with one-time transactions (such as listing fees).
• "Adjusted EBITDA margin" represents Adjusted EBITDA as a percentage of revenue.
• "Mining Profit" represents gross profit (revenue less cost of revenue), excluding depreciation.
• "Mining Profit Margin" represents Mining Profit as a percentage of revenue.

SOURCE CryptoStar Corp.

CryptoStar Corp., Attention: David Jellins, President and Chief Executive Officer, Email: [email protected], W: www.cryptostar.com